Start retreat center

Hi everyone,

I am from Belgium, and together with a friend of mine I am considering opening a yoga retreat center in Sauraha, near Chitwan national park. A nepali friend of ours, Deepak, has land there, and is willing to give this on lease to the company which we will start.


Many questions arise. I have been in Nepal many times over the last few years, and I love the country and its people, but I know very well how corrupt it is, and there are sharks all over the place wanting to eat you. So theres a strong apprehension about investing my money in Nepal.

Is it possible to take profits out of nepal?

Can anybody advise a good lawyer who knows about DFI, direct foreign investment, and setting up a company.


The land would be given in lease to the company, but can the owner of the land break such a lease?

you can contact feel free further details for foreign investment in nepal **

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@saugat

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thank you

So yes there is one way to get money out and no it isn't easy.. You have to set up an account with a specific bank and in a specific way  usually using an attorney to do so and we are looking at it as well and the minimum capital requirement is I believe $50,000 for that.

Good luck on finding an good attorney we are still in process and may be sending my wife to school for that too ( she is already a doctor and has a Masters degree).

This was good>  https://www.export.gov/article?id=Nepal … Investment

This was even better:http://www.investnepal.gov.np/portal/in … ybClKdKh9M

I go straight to your last question, and I give you my unequivocal answer - loud and clear. 
YES, the owner of a lease in Nepal can most definitely break his written commitment made in this case in favor of the company you will have created, and in whose name it's being held. 
It's happened before and unfortunately, it will happen again.
In the west, we tend to think that if a commercial lease is well worded by a good lawyer, one is safe. In a place like Nepal, this is not true, believe me. The fact is that in this country, the owner of a lease basically has all the rights. In comparison, a leaseholder here (read "tenant-occupier") has few (if any). If the owner wants to be of bad faith and breaks the lease (out of financial greed), all the protective clauses written into the lease will NOT be enough to protect you -- and need I add -- don't count either on the legal or the judiciary  system to save you and your investment.
To be clear, if you create a company, that company should OWN the land - not lease - (or nothing).
Regarding, the repatriation of profits, I refer you to comments I've already made in these columns here. Not easy for sure, but it can be done on the basis of "compensation" with other foreigner/expat friends along the lines I've detailed. I've done it, so I know it can be done safely and legally, which is most important.
I defer to others on the question of a choice of a "good lawyer" (?) -  for me, that's another moot subject. Suffice it to say that it's not that obvious to find one.

Re lease: I fully agree. Don't go there. Sadly, I know of at least one specific case where well-intentioned foreigners invested good money in a nepali project,  only to suddenly get the shock of their lives several years after investing with the receipt of a registered post containing an "Order to Vacate the premises in 21 days" .....(or face court proceedings type of thing)...in a clear breach of lease. This is not fiction. True, the nepali owners have no risk (read nothing to lose, everything to gain) but the same cannot be said for the people who invested in the leasehold and who can't easily walk away with those fixed assets/improvements to land, in the event of a sudden and unforeseen (God forbid) breach of lease by some unscrupulous nepali owners. It's true, existing laws protect owners, but not same-same for occupiers' rights.
Conclusion: I share the view: Buy if you want, but don't lease.
Re lawyers: If you look very hard, it is possible to secure the services of a "good lawyer" in Nepal. However, what must be kept in mind is the fact that nepali lawyers do not work in a vacuum. So one must understand that as good a lawyer as he/she may be, just "being good" is no guarantee of success.  It will be incumbent upon him/her to defend your rights in a system which is known to be broken. It's public knowledge that the former Chief Justice and head of Nepal's highest Court and entire judicial system tried to remedy things some years ago, but she was subpoenaed because she dared raise her voice, before being retired. So let's hope that things will improve in future in both the legal and judicial fields. In the meantime, just keep in mind that until all corruption can be stamped out, this whole playing field will not be an easy context for any "good lawyer" (as professional as he may be) to operate in, and to defend your (and our) rights notably in the commercial field, that's for certain.

Theo,

How would we find your old posts on repatriating money from Nepal?

That is a concern if we bring in 300K or more US.

Randall

To refresh your memory, please re-read the good exchange you and I had in fact not so long ago - on May 25, 2018 - entitled "Getting Money from Nepal to USA".
As we all know, it's not easy to repatriate funds, read profits, from Nepal back home as long as the NRP remains a non-convertible currency on world's currency markets.
On May 25th last, I suggested a very practical way to achieve this, with a purely private "compensation deal" which is in fact concluded outside of nepalese jurisdiction between you, a foreigner, and another trusted friend of yours, another foreigner - settled abroad - and therefore totally above board.   
See your reply where in thanking me, you said you liked my suggestion. You remarked that my replies were erudite. I am highly flattered!
If you have trusted friends you can do deals with, this method should work well for you and the cost will be limited to a few rupees per dollar, assuming we are talking about dollars.

Note: What is illegal and NOT recommended is the Hundi. That is strictly illegal and the best way I know to lose one's shirt.

Oh,

Thank you I remember now and it was a great idea.

Thank you!

Randall

You're welcome, Randall. If you are doing a big ticket transaction, I further suggest you do the exchange with friends of yours who happen to be in the handicrafts business. If I recall correctly, you said you had friends who were buying nepali rugs. Well start with them, particularly if they should happen to be filling the contents of an 18foot container, in a shipment worth $20,000 to $50,000 kind of thing. They should be happy too because 1. you'll be saving them having to make a dollar transfer from US bank to Nepal and 2. they'll be getting a much more beneficial exchange rate from you than they would if they transferred their dollars to NP - bank to bank - and got the nepali bank's (lower) exchange rate for that day.
A win-win situation therefore for you and your friends! You get your dollars home easily and safely...and they get rupees at good premium directly from you in Kathmandu, which they'll then use to pay the supplier.

P.S. If you have close friends who happen to have an NGO operating in Nepal, do same/same with them. Your proposal to them should make them happy too!

Hope this all helps.

Hello

If you want to invest in Nepal, from a western country, and you want to make any proffit to take back out the country, then better not invest and stay home.
Taking away money from a thirt world country is criminal thinking.
If you really have a good heart, then invest the profit you make in the country again.

Starting point is to become fully familiar with all the legal provisions set out and provided for in favor of investors in the Foreign Investment & Technology Transfer Act, 1992 of Nepal, an official Government publication - the highest authority defining such matters.

https://ibn.gov.np/uploads/files/reposi … _Final.pdf

Free to invest (or not), free to repatriate (or not) such is the sound international basis and norms for cross border transactions of investors around the world. No mention made of criminal wrongdoings in official texts.